The Government has today announced a package to help first time buyers onto the property ladder and, hopefully, kick-start the stagnant housing market. The new measures will form part of an emergency rescue package for hard pressed home buyers.
As well as shared equity schemes to help first time buyers, the Government has introduced interest free loans (called HomeBuy Direct) which will go towards part of the value of a newly built property. First time buyers with a household income of under £60,000 can now borrow up to 30% of the market value of their new home interest free, funded by the state and developers. Once the five year interest free period is over, homebuyers will be asked to pay a fee, although no more details of this was provided at the time of writing.
Who is eligible?
You must be a first time buyer, with under £60,000 household income and a clean credit record.
On top of this intitiative, the Government has also today said that it is suspending stamp duty for properties worth up to £175,000, which is £50,000 more than the current threshold. The suspension will come into force on Wednesday 3rd September, and be in place for one year.
Together with falling house prices, there is no better time to get onto the housing ladder.